CSX Corp (NASDAQ: CSX) reported earnings of $1.08 per share on revenue of $3.06 billion for the second quarter of 2019. Analysts had expected the railroad operator to earn $1.10 per share on revenue of $3.14 billion. CSX stock, which closed up 1.34% at $79.55 today, dropped about 6% during the extended hours of trading.
CSX’s Q2 revenue declined by 1% over the prior year as merchandise growth was offset by intermodal weakness. Favorable mix and pricing gains across most markets were more than offset by intermodal volume decreases and lower other revenue.
Merchandise volume and coal volume was up by 1% and 2%, respectively. However, intermodal volume decreased 10% primarily due to rationalization of low-density lanes.
CSX expects full-year 2019 revenue to decline 1-2%. This outlook reflects the company’s present activity levels, with upside if conditions improve in the second half. CSX added that it is taking a cautious forecasting approach given the economic uncertainty.
Expenses decreased 3% year-over-year to $1.76 billion, driven by efficiency savings and lower volume. Labor and Fringe expense decreased $21 million, while Materials, Supplies and Other expense dropped $14 million. Fuel expense declined $36 million primarily due to a 6% price decrease, record fuel efficiency and lower volume.
READ: Wells Fargo (WFC) stock drops despite topping Q2 estimates
During the second quarter of 2019, CSX repurchased 11 million shares for $860 million.
CSX’s peer Canadian Pacific Railway (NYSE: CP) reported its Q2 results earlier today and its earnings and revenue topped analysts’ views, making the stock to reach its new 52-week high today. CP stock closed up 3.92% at $246.27 today.
CSX shares have gained 28% in the past three months and 25% in the past 12 months.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to